On the crossroads of Central and Eastern Europe, Croatia identifies much more strongly with countries to their west than the rest of their neighbours on the Balkan Peninsula. After paying the price of independence from former Yugoslavia with a war, today Croatia is a peaceful and attractive travel destination. The Homeland War (1991-95) involved sporadic but occasionally strong military action fuelled by internal ethnic conflict and turbulent transitional processes in Bosnia & Herzegovina. The war started in 1991 and ended with the UN-brokered Dayton Peace Accord, signed in December 1995. Today, ambition for economic prosperity and EU membership has motivated Croatia to try to come to terms with conflicting issues. Among them is the handing over of war generals to the International War Crime Tribunal and the resolution of a border dispute with Slovenia. At the end of June 2011, Croatia successfully closed negotiations for European Union (EU) membership and is expected to become its 28th member in 2013.

With long traditions dating back to before independence, tourism is the most important economic sector in Croatia. According to numerous official data sources, it accounts for around 30% of employment, 25-27% of gross domestic product (GDP) and about 40% of the country’s exports. The tourism industry generates significant economic benefits but the fact that it constitutes a substantial share of the economy is also seen as a source of vulnerability. Unexpected political, economic or meteorological factors could cause sudden falls in tourism arrivals, which in turn can trigger contraction of the entire national economy.